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| a rise in general level of prices of goods and services in an economy over time |
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| average price of goods, use inflation price in compound interest |
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| inflation/percetage calculation |
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| original price(1+rate of increase) ^ time |
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| use continuous compounding Pe^rate X time |
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| no taxes charged on gains |
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| munibonds - bonds issued by the local government and 529's which are bonds issued for education |
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| 401 k, IRA, retirement accounts |
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| money to invest times 1+ APR to the number of years |
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| pmt times (1+ (r/n))^nt - 1 divided by (r/n) OR pmt ((1+(r/n)^nt -1)n all divided by r |
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| Individual retirement Account an account you can put money into up to 5000 a year tax free |
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| America has what kind of tax system |
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| why do higher incomes pay higher tax rates |
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| same rate tax for all incomes |
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| higher tax rates = lower income trickle down economics |
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| higher incomes pay higher tax rates |
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| import and export tariffs |
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| taxes on items that cross the border |
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| also known as inheritance tax or death tax - tax on peoples property after they die |
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| big luxury items like a boat or expensive car |
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| tax on goods at point of sale |
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| tax on property or land owned |
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| tax on increased value of goods at each point of manufacture |
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| a ratio/ part to a whole usually adding up to 100% |
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| 100% an item is 70% off meaning you pay 30% of |
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| land or perminent structures built on that land |
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| terms commonly 30, 20, or 15 years. fixed payments per month |
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| rate can adjust to current market rate at predetermined intervals. all 30 years unless otherwise noted are up for ARM every 2 years. usually there is an adjustment cap at about 5.5% |
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| not a rate change but you start out with a low payment and eventually start paying huge payments. Usually these are for individuals with jobs that will potentially get them more money down the road. Doctors generally have these. |
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| for individuals with sub-par credit (below average) |
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| the charge for the privilege of borrowing money typically expressed as an annual percentage rate |
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| a pre-agreed upon time that the money will be borrowed |
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| interest that is charged only once over the lifetime of a loan |
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| I=prt interest equals principal times the rate times the time |
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| interest paid on the principal plus any previously accrued interest A=P(1+r/n)^nt which means accumulation equals the principal times 1 plus the rate over the amount time to the amount of time times the years |
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| Annual Percentage Yield a way to compare different investments |
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